SPRINGFIELD, Ill., April 29, 2013 /PRNewswire/ -- Town and Country Financial Corporation (OTC BB: TWCF) reported first-quarter net income of $686 thousand compared to $675 thousand in the first quarter of 2012. Net income available to common shareholders was $0.24 per share, up 5.8% compared to $0.23 per share earned in the first quarter of 2012. The first quarter of 2013 included a gain of $0.06 per share from the sale of securities compared to no gain in 2012, while net income from mortgage banking operations was $0.07 below the year-ago quarter.
Net revenue was $5.5 million, 4.8% above the first quarter of 2012 largely due to gains on the sale of securities and trust and investment advisory and commission fees that were up 58%. Revenue from the highly cyclical mortgage banking business was 12% below the year ago quarter on volumes that were 16% lower. Net interest income was up 1.2% driven by 16% average loan growth, especially loans to businesses. But, despite this, the margin declined to 3.11% from 3.59% driven by additional liquidity due to a 2012 acquisition and the persistent low rate environment that has lowered earning asset yields faster and farther than the cost of funds.
President and Chief Executive Officer, Micah R. Bartlett, noted, "First quarter revenue demonstrated resiliency through the diversity of our business lines and the balance sheet. Some weakness in the net interest margin and variability in mortgage banking production levels was mitigated by securities gains and growth in assets. Notably, loans were up 19% year over year, 80% due to organic growth and the remainder attributed to a 2012 acquisition. We are also pleased with the success of our trust and investment business as assets held or managed grew by 40%."
Non-interest expense was $4.4 million compared to $4.3 million in the first quarter of 2012, the change due to costs related to two additional banking offices, higher mortgage-related staffing levels, and the merger of Logan County Bank into Town and Country Bank. The merger was effected at the close of business March 8, 2013.
According to Bartlett, "We are very pleased with the strong growth posted in our loan and trust and investment portfolios and the related revenues. Moreover, we believe that the growth is the result of the commitment we have made to our customers and communities to share proven solutions that enhance their financial health."